Smartphones are from Mars Tablets are from Venus

Jo Wightman Director of Client Services

Fiksu

Agenda

•  The tablet opportunity •  How to succeed at user acquisition for apps on

tablets v. smartphones - Differences - Challenges

•  How to overcome challenges and be successful •  Example of successful tablet app marketing

campaign

The Tablet Opportunity

•  Tablets are reaching main stream penetration - 30% of US population will own a tablet in 2012 -  iPad user base has grown 50% since last year

•  180k apps in the App Store - Approx. 30k new iPad apps/quarter or 20% growth - Keeping pace with growth in device base*

•  In 2012, many new Android tablet devices released or will be released - Nexus 7 Tablet, Kindle Fire HD, Nook HD, Microsoft

Surface

Demographics Differ

Source: Neilson

Demographics of Tablet and eReader Owners are Changing Age Distribution of Connected Device Owners

High Rates of in App Purchases

•  Tablets have unique monetization potential - Average ecommerce order value for tablets is $123

compared to $80 on smartphone and $102 on computers

•  Users are 3x more likely to purchase on tablet vs. smartphone - Tablets account for 20% of e-commerce sales and

yet only 9% of shoppers own tablets - 10% of iPad apps feature In-App Purchase vs 6% of

iPhone apps

Apple App Store Structure

•  Worth noting that through iOS 5, there were differences in the structure of the App Store between iPad and iPhone/iPod

•  Consistent experience now in iOS 6 - Watch Fiksu webinar

for more information on the numerous changes in iOS 6

Google Play

•  Minor differences in Google Play for Tablets & Phones? - Staff Picks for Tablets - Endless scrolling for both phone/tablet

•  Challenges - Google Play shows apps if they are compatible with

device but the app may not be optimized for device - Known user experience frustration

- Drives users to “Staff picks” and “Tablified Marketing HD” to discover apps

How to Overcome Challenges

•  Apple App Store: Impact of rank - “Top 10, 25 & 50”

will fade with iOS 6 changes

•  Google Play: Shout about your Tablet focus! -  Include the words “HD” or “Tablet” in title & description - Aim to get 4 star rating or higher to attract Feature

Daily Downloads

Less Ad Network Inventory Available

•  Fewer Ad impressions & opportunities - Tablet In-App Ad Impressions account for 15-20% total - Larger focus on rich media, video, brand marketing - More impressions available on mobile web, now

possible to track with Fiksu SDK •  Challenge - Finding sufficient mobile ad traffic to meet goals - Reaching all Tablet devices (especially Android Tablets) - Driving sufficient volume to execute Burst campaign to

top ranks on iPad

Ad Inventory by Device

Source: Various Mobile Ad Networks

Source: Various Mobile Ad Networks

Rank Differences Between iPad & iPhone

Overall Rank

iPad Downloads/Day

iPhone/iPod Downloads/Day

iPad vs iPhone

Top 5 20,000 – 25,000 70,000 – 80,000 30 - 40%

Top 10 16,000 – 20,000 45,000 – 55,000 30 – 40%

Top 25 10,000 – 16,000 30,000 – 40,000 30 – 40%

Top 50 8,000 – 10,000 25,000 – 30,000 30 - 40%

Top 100 4,000 – 8,000 12,000 – 15,000 30 - 40%

Source: Fiksu

How to Overcome Ad Inventory Challenges

•  Work with wide selection of ad networks to drive volume of downloads & meet goals - Target as many Ad Networks as practical -  Include variety of inventory such as: Non-Incent Banner Ad

Networks, Mobile Web, RTB Exchanges, Incentivized Inventory

- With this approach, burst to Top 50 on iPad is possible •  Constantly look for new opportunities - Engage with new ad networks & tracking technologies e.g.

Digital Fingerprinting for mobile web - E.g. Cross promote between different channels

Tablet Ad Campaigns Require Aggressive Optimization

•  Ad statistics differ from smartphone app ads; on average: -  Click through rates lower, Cost per Click higher, Conversion

Rates lower -  However, this offset by higher value of tablet user

•  Tablet apps have more success on certain ad networks -  This might differ from ad networks used in smartphone app

strategy •  Challenges: -  Bottom line: What works for your smartphone app may not be the

best strategy for a tablet app -  Aggressive optimization strategy is required to determine best ad

networks and achieve the greatest ROI

Ad Network Differences for Tablet Apps

Cost per Conversion vs Average

Source: Fiksu

Non-Incentivized Networks

Metric Click Through Rate Cost per Click Conversion Rate

iPad iPhone/iPod iPad iPhone/iPod iPad iPhone/

iPod

Non Incent (1) 0.86% 0.90% $0.25 $0.17 N/K N/K

Non Incent (2) 0.81% 0.45% $0.07 $0.07 3.40% 2.58%

Non Incent (3) 0.42% 0.50% $0.16 $0.15 6.67% 4.66%

Non Incent (4) 0.90% 0.77% N/K $0.05 N/K 1.28%

Non Incent (5) 0.24% 0.58% $0.08 $0.14 1.96% 8.43%

Non Incent (6) 0.87% 1.60% N/K $0.28 N/K 10.61%

Average* 0.68% 0.80% $0.14 $0.13 4.0% 5.0% Source: Fiksu * Excludes outlying data

Category Differences for Tablet Apps

Source: Fiksu

Cost per Conversion vs Average

The Unofficial Fiksu Loyal User Index for iPad

Cost per Loyal User Avg $2.72 (about double iPhone/iPod)

Source: Fiksu Note (1) : Methodology identical to what Fiksu uses for monthly Loyal User Index for iPhone/iPod

2012 Cost per Loyal User

$3.0 $3.0 $3.3 $3.2

Jan Feb Mar Apr May June

Release of 3rd Gen iPad March 2012

$2.3

$1.6

How to Overcome Ad Optimization Challenges

•  Optimize according to platform -  Track campaigns for tablet apps separately -  Don’t assume what works on Phones will work on

Tablets -  Adjust ad network spend and creative based on platform

•  Use external benchmarks to assess results -  Fiksu Loyal User Index for iPad suggests should be

paying $2 – 3 for Loyal User -  Although this is 1.5 – 2x higher than iPhone/iPod, know

that users are 3x more likely to purchase on iPad

Case Study: iPad vs Android Tablet •  Campaign executed on iPad & Android Tablet - Same app, same budget - Same goal to drive loyal app users

•  iPad campaign proved very cost efficient & impactful - Cost per Conversion 1.5x lower on iPad - Total download volume 5x higher on iPad - Campaign duration 3x shorter on iPad

•  Android Tablet campaign also successful including high % of returning users and excellent results compared to an average campaign on other devices

Case Study: Android Tablet Campaign

•  £12.3k ($20k) Budget •  11k Conversions •  20k Downloads

Source: Fiksu campaign with a popular utility application; Note: Non-Incent Ad Networks only (1) Conversion Rate = Conversions / Clicks (2) Returning Users = Users who have opened 3 or more times

•  Rank 100 in Category •  3 week duration •  1 Conversion : 1 Organic

6.0% £.95 ($1.55) 56%

4.2% £1.25 ($2.03) 62%

3.2% £1.68 ($2.72) 43%

Conversion Rate Cost/Conversion Returning Users

Case Study: iPad Campaign

•  £12.3 ($20k) Budget •  25k Conversions •  126k Downloads

Source: Fiksu campaign with a popular utility application; Note: Non-Incent Ad Networks only (1) Conversion Rate = Conversions / Clicks (2) Returning Users = Users who have opened 3 or more times

•  Rank 60 Overall •  10 days duration •  1 Conversion : 5 Organics

Returning Users 7.2% £.65 ($1.06) 48%

4.5% £1.00 ($1.62) 48%

4.3% £1.15 ($1.86) 48%

Conversion Rate Cost/Conversion Returning Users

How Fiksu Can Help Your Tablet App Marketing

•  Target by device – iPad, Android devices - Wide variety of categories – e.g. Books, Games, Catalogs,

Social Networking, Lifestyle, Photo, Sports, Travel, Utility… •  Fiksu for Mobile Apps - Broadest access to inventory - 40 networks, exchanges - Traditional Banners, Rich Media, Video ad units - Incentivized and Non-incentivized sources

- Optimize on loyal users who drive ROI for tablet apps •  FreeMyApps Incentivized Service - Highly successful track record with iPad apps - Build rank, visibility

If you have any questions, please contact me at jo@fiksu.com

Contact Fiksu Email: sales@fiksu.com Phone: 1.855.463.4578 Website: www.fiksu.com Twitter: @fiksu

European Sales Director Tim Jones Email: tjones@fiksu.com Mobile: +44 (0) 77899 758 94

Download Fiksu’s Free eBooks www.fiksu.com/ebooks

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